Experts Say Outdated IT Infrastructure is Holding You Back
20th August 2024
A recent study from Manhattan Associates suggests outdated IT infrastructure is holding you back. 97% of supply chain professionals believe their IT infrastructure needs modernisation, highlighting a significant risk for businesses failing to keep up with industry demands. Outdated IT infrastructure in supply chain operations not only hinders growth but also affects overall competitiveness.
As technology advances rapidly, many businesses struggle to keep their IT systems up to date. This lag in IT modernisation can stifle innovation, increase costs, and create operational inefficiencies. Manhattan Associates research sheds light on these challenges and offers key insights into how companies can upgrade their IT infrastructure for supply chain success.
Why IT Modernisation is Critical
Warehouses have evolved far beyond simple storage spaces; they now serve as strategic hubs for managing complex supply chain processes. From inventory management to real-time data analysis, a robust IT infrastructure is essential for maintaining efficient and scalable operations. According to Manhattan’s ‘State of Warehouse Operations’ report, outdated IT hardware ranks as the biggest challenge in the industry.
Failing to modernise IT systems leads to inefficiencies, higher operational costs, and difficulties in scaling operations to meet growing demands. Additionally, legacy systems expose businesses to security risks as outdated software becomes vulnerable to breaches, which could damage a company’s reputation and bottom line.
The Dangers of Outdated IT Infrastructure: Learning from the NHS
A high-profile example of the risks posed by outdated IT systems is the NHS, which has faced significant operational challenges due to its aging infrastructure. The WannaCry ransomware attack in 2017, which targeted the NHS’s outdated systems, disrupted services across the UK and highlighted the critical need for IT upgrades. The lesson here is clear: businesses that fail to modernise risk severe disruptions, operational setbacks, and even reputational damage.
The NHS example highlights the broader implications of failing to invest in modern IT systems. As software ages and support ends, critical data becomes vulnerable, and organisations face reputational damage alongside operational setbacks. For warehouses, the lesson is clear: delaying IT modernisation can lead to similarly severe consequences, with inefficiencies, rising costs, and the inability to scale or adapt to evolving market demands.
The Business Case for IT Modernisation in Warehouses
With 79% of businesses acknowledging the urgent need for IT upgrades in their supply chain operations, the message is clear—modernisation is essential. A well-integrated, up-to-date IT infrastructure creates a data-driven, connected ecosystem that optimises warehouse operations. This includes everything from real-time inventory tracking to analytics that help reduce stockouts and optimize space.
Unified systems enable seamless communication, resulting in faster order fulfillment, on-time deliveries, and higher customer satisfaction. Additionally, adopting automation and robotics helps streamline workflows, allowing human workers to focus on more complex, value-added tasks. Moreover, the data insights gained from modern IT systems empower better decision-making, enabling businesses to swiftly adapt to changing demands and market trends.
In a competitive landscape, modernising IT infrastructure is no longer an option—it’s a necessity. The sooner businesses act, the better positioned they will be to navigate the future of supply chain management.